What do I need to start property management company in FL?

Question

Hi Everyone,

I have been thinking of starting a small property management company in FL and wanted to know of anyone who has successfully done so and give me a checklist of things i need to acquire or do prior to starting.

Any feedback is appreciated.

Angie

Brian D. Beatty · Answer

In the State of Florida, you are allowed to property manage your own properties. To legally property manage others properties requires a Brokers License and established Escrow account, to Start. In order to get the Brokers license, you have to have a minimum 2 years as licensed agent. So unless you have a Brokers license or can partner with one, that's the beginning.

Elizabeth Shelby · Answer

If you are doing short term rentals property management you don't need a Brokers License.  All you need is a County license and if applicable a City license. A separate account for holding monies belonging to home owners.  Short term rental property management is a lot more "hands on" than long term rentals though.

John Thedford · Answer

Call DBPR. They can answer all of your questions and concerns.

Angelica M Garzon · Answer

Thank you Brian that was very helpful. I do have partner that has a brokers license. What would be my next step? I don't want to do any other types of real estate transactions other than PM. I read that I need a EO insurance. Do i still need an escrow account even though I will not be doing B/S transactions?

Peter Garian · Answer

Hi Angelica, Brian is correct. You will need a brokers license to be able to manage properties for clients. You could also partner up with a broker if you don't have a license but there would have to be a business relationship established, and for that, you'll need legal advice.

If you are starting a property management company just to manage properties you are the owner of. No Broker license would be needed. But just make sure you speak with an attorney when setting up your business.

I would also recommend E&O insurance along with probably some kind of liability. But speak to your insurance specialist they will be able to guide you.

You will need a good lease, as well as a strong property management agreement. Use an attorney who is knowledgable in PM so that you have those agreements in place and are well-protected for when you start doing business. I would avoid generic state-approved or FAR-Bar contracts. They are ok for home buying and selling but I feel they fall short when it comes to PM.

You must have a trust account for handling security deposits and it must be reconciled every month. Again, a good attorney and accountant or bookkeeper will be helpful here.

I would also recommend a good property management software to help run your operation.

Angelica M Garzon · Answer

@Rita Medeiros That's great! I will be there for sure!

Julian Sage · Answer

Are you interested in starting a LTR management company or STR?

Elizabeth Shelby · Answer

When I say it is more hands on what I mean is there is a lot more work involved in short term rentals than there is with long term.  There are departure checks, maintenance checks, cleans to be checked (gotta love those back to backs - departures at 10am property in tip top shape by 4pm for new guests) door codes (if you are sensible to be removed and new ones put in). Pre arrival checks to make sure everything is still good with the property.  If you use airbnb where they tend to stay 2/3 nights this is a twice weekly occurrence. Good property managers (few and far between in my opinion) physically go and check on the guests after arrival to make sure they are happy with their accommodation but more importantly that there are only the number of guests staying that should be.  Phone calls from guests at silly o’clock at night for something that can’t be seen to until morning anyway.  And you haven’t even started with the paperwork yet, filing monthly taxes, sending invoices plus the numerous emails from owners and guests.

A whole different ball game to long term rentals.

Luke Rorech · Answer

Thanks @Elizabeth Shelby. I wonder why less licensing is required when it is more hands on than long term PM

Elizabeth Shelby · Answer

Yes Luke R I am sure.  There is no requirement to hold a Brokers license nor even a realtors license to handle short term rentals in Florida.  What you do need is a good team and a good booking system if you intend to manage more than a handful of properties.

What do I need to start property management company in FL?

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